Far from abandoning the trade war against China, the United States are advancing their pawns with a clear preference for bilateral negotiations. During the G7, the US president announced a " very big deal " in perspective with the United Kingdom. Donald Trump also welcomed an agreement in principle reached for another " very big deal " of trade with Japan.
Tense negotiations had lasted five months between the United States and Japan. Since Washington had slammed the door of the Trans-Pacific Free Trade Agreement , which included 12 countries. The White House blamed Japan for its trade surplus with the United States.
Japanese Prime Minister Shinzo Abe confirmed that a consensus had been reached with Donald Trump. US products, particularly US beef and pork, will benefit from reduced tariffs upon entry into Japan, which in turn will be able to export its industrial products to the United States.
Japan has, however, retained taxes on US milk powder and butter. As for Japanese cars, they were out of the agreement, so US taxes are maintained for now.
Donald Trump welcomed a " very big deal ", " billions and billions of dollars " " that concern agriculture and e-commerce, " he said. The announcement will comfort the agricultural electorate of the Republican president. At least momentarily, because Donald Trump's reversals are unpredictable.
To date, the two leaders plan to sign the Japan-US bilateral agreement in New York in September at the UN General Assembly.
"We have gone to great lengths in our country with our farmers because they are going to do it." And Prime Minister @AbeShinzo, on behalf of Japan, they're going to be buying all of corn . " - President @realDonaldTrump pic.twitter.com/cqRTDeKZLRThe White House (@WhiteHouse) August 25, 2019